The Zambia Forestry and Forest Industries Corporation is targeting to raise K329.6 million when it lists its 40% shares on the Lusaka Securities Exchange.
The ZAFFICO Initial Public Offering is expected to debut on the LuSE on February 7th 2020.
According to the prospectus published last week, the offer of up to 40% of the shareholding of ZAFFICO totals 160 million Ordinary Shares of the share capital in ZAFFICO to the Public, employees of ZAFFICO and selected institutional investors.
ZAFFICO is hoping that it’s shares will open at K2.06.
ZAFFICO says the objectives of the offer and listing include to afford the Zambian Public, Zambian Institutional Investors, employees of ZAFFICO and other qualifying investors the opportunity to participate in the potential growth of ZAFFICO.
It also says it wants to fund ZAFFICO’s future expansion programs
to create a public market for the Ordinary Shares and to provide the Selling Shareholder, the Industrial Development Corporation with an opportunity to reduce its shareholding in the company.
The company also says it wants to support the development of the Zambian capital market.
The ZAFFICO IPO will be the first in seven years after the Madison Financial Services IPO of mid-2014 in which the company raised K62 million from investors who paid K3.10 per share for the financial services company’s security.